TaxTMI 
TaxTMI 
TaxTMI 
2018 (6) TMI 1284
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....is right in law in canceling the reassessment? (2) Whether, on the facts and in the circumstances of the case is not the reassessment in accordance with law and the ITAT was not justified in interfering with the same?" 2. The relevant assessment year is 1999-2000 and the return of income filed by the assessee conceding a total income of Rs. 6,48,88,718/-, was proceeded with under Section 143(1) of the Income Tax Act, 1961. Later, the assessment was re-opened and a revised total income of Rs. 8,14,57,229/- was determined. The challenge of the assessee before the first appellate authority was on the ground that the Assessing Officer had looked into other issues and found escaped assessment on those issues also; which issues were never re....
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....cy deposits and rent from Bombay flat were found to have been not assessed by the AO. With respect to Section 80(IA) claim, the finding of the first appellate authority was that the AO went on a rowing inquiry and called for details from the assessee based on which re-computation was carried out which was impermissible under Section 148(2). The reasons recorded were not sufficient to carry out re-opening and to conduct a rowing inquiry making computations and apportionment in accordance with the details supplied by the assessee, held the appellate authority. The first appellate authority directed re-computation of the deduction under Section 80(IA) to the extent it was conceded by the assessee. 5. On the question of additions made with res....
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.... [CIT v. Sun Engineering Works P. Ltd.] has not laid down any preposition as has been found in Travancore Cements. The Full Bench held that if in the course of reopening, for escapement of income, it comes to the notice of the AO that any other item or items of income, other than that recorded as reasons originally for the purpose of re-opening, has escaped assessment; then the AO is bound to assess such item or items of income also in the course of reassessment under Section 147. The decision in (2007) 291 ITR 500 (SC) [Asst. CIT v. Rajesh Jhaveri Stock Brokers P.Ltd.] was also relied on by the Full Bench. The Hon'ble Supreme Court in that decision held that at the stage of issuance of notice under Section 148, the only question is whe....
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....notice under Section 148, it is open to him to assess or re-assess income in respect of any other issue though the reasons for such issue had not been included in the reasons recorded under Section 148(2) (sic. Para 19)". 10. The Court then went on to consider whether in the circumstances of the original reasons recorded for re-opening, does not conclude in a finding of escapement of income; the other issues on which there were no reasons recorded, but were put to the assessee in the course of the re-assessment proceedings, could be proceeded with. The Division Bench answered the issue in the negative and found that, if on the original reasons recorded, there are no additions made, then necessarily, for the other issues detected in the cou....
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.... on re-opening other than what was recorded as reasons under Section 148(2). We have found otherwise based on the Full Bench judgment as also the judgment of the Division Bench of the Bombay High Court. In such circumstances, we would have remanded the matter for consideration of the quantum appeal. The issues requiring fresh consideration are (i) Section 80(IA), (ii) deemed dividend and (iii) expenditure with respect to Mammen Mappillai Hall. 13. Then, the learned counsel appearing for the assessee placed before us two decisions of this Court in which the issue under Section 80(IA) and of deemed income was considered and the same having acquired finality. When ordering a remand we have to notice that there are issues already settled, in t....
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.... manner: "The assessee has not explained why there is discrepancy in the sales as per the old statement and the new statement except for the discrepancy in Trichur. After due consideration this year I am making a departure from the old method and allocating the sales as per the old statement as the sales but with certain changes"(sic). This definitely is not permissible and falls foul of the principles of reassessment for reason of it being a mere change of opinion. The power conferred under Section 147 is not one of review and is of reassessment for reasons recorded. These reasons recorded has to emanate from some material coming to the notice of the Assessing Officer after the original assessment; which is absent at this instance. On the ....